Indonesia has been urged by the Organisation for Economic Co-operation and Development to overhaul its labour laws, remove foreign investment restrictions and cut its subsidy bill by linking increases in domestic fuel prices to world energy markets. The country’s central bank was also advised to act “resolutely” and “preemptively” to raise rates and combat inflation, which hit a 21-month high of more than 11 per cent in June.
The recommendations were made in the OECD’s first comprehensive study of the Indonesian economy, which it expects to grow by more than 6 per cent this year. The report was released on Thursday.
To have a brief look on the OECD’s survey result, ” Economic Assessment of Indonesia 2008”, please visit: